How to account for insurance claim proceeds

[Jonathan Bryan]

I had a fire in one of my properties, and I have received the check from my insurer to pay for the repairs.  How do I account for these proceeds in my books?  It's not really taxable income (if I use it for the repairs).  If it is taxable income, when I have the repairs done, are the repairs expenses?  They shouldn't be capital improvements because they shouldn't increase the basis.  Can anybody explain how I account for this?